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the campaign early in this year, and penetrated within one hundred miles of St. Petersburg. Alarmed at the approach of her enemies, the czarina sent 10,000 Russians, under the command of General Ingelstrom, to obstruct their progress. Ingelstrom attacked the Swedes in their lines at Karnomkoksi, on the Saima Lake, but he was defeated with the loss of 2000 men. Gustavus still advanced, while his fleet, under the Duke of Suclermania, sailed up the Gulf of Finland, penetrated into the harbour of Revel, in the hope of demolishing that great naval arsenal, and a division of the Russian fleet which lay at anchor in that harbour. He was frustrated by a storm, and, subsequently, he was twice attacked by Russian squadrons, which on both occasions enclosed his fleet; but each time he extricated himself from danger, though with great loss cf ships and men. Having recruited his shattered forces, Gustavus took the command of the fleet himself, and having encountered a large Russian fleet, after a bloody battle, which lasted two days, he gained a decisive victory. This defeat alarmed the czarina, and being abandoned by Austria and threatened by England and Prussia, she entered into negociation with Gustavus, and by the month of August a treaty of peace was concluded between them. By this treaty those of Abo and Nystad were confirmed; each power was to retain what it possessed before the war; and Sweden renounced all claim to the possessions which had once belonged to it, and which it had overrun during the present war. Russia also granted permission to export grain from Livonia; and it was mutually agreed to appoint commissioners to settle in an amicable manner the line of frontier between the two countries: the two courts further promised themselves that they should strengthen their connexion by a close alliance, and agreed to forget what was past. In Paris, during this year, the national assembly pursued its legislative labours. All ecclesiastical possessions had, at the close of the preceding year, been declared national property, and the reformers soon after laid their hands on the domains of the crown: with the exception of some castles, which were to be left to the king, the rest were transferred to the state. To facilitate the sale of the possessions of the crown and the church, paper money was created, which was at first ordered to last only six years, but which was subsequently declared current money--as good as gold. Thes
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